News

Tulip Shout Price to Remain at Stand-on Levels

04 June 2012

UK - The gloom that settled on the industry on Thursday night with the announcement that Tulip had decided to drop its shout price by 1p to 147p was soon dispelled the following dawn with news that like our current Government, a U-turn had been executed and the Tulip shout price would remain at stand-on levels, writes Peter Crichton.

This removed the temptation for the other major players to drop their shout prices and as a result they all stood-on so the pecking order remains the same:

150p Woodhead.
148p Gill.
148p Tulip.
146p Cranswick.
146p Vion.

The spot market provides a ready barometer of the health (or otherwise) of the industry and most sellers were able to achieve 150p/kg with the odd copper or two more available from some outlets who are still looking for numbers, despite the upcoming short week.

All the evidence filtering through from some of the larger pigs sellers is that they are fairly tight for numbers and if demand can be maintained at the retail end we could see prices rise again in the next few weeks.

A mini rally in the value of the euro also helped closing on Friday worth 80.6p compared with 79.94p a week ago.

Cull sow buyers were generally operating in stand-on mode with most sellers able to achieve 120p plus and a further recovery in the euro would help on this front.

The weaner sector still remains the Cinderella of the industry and the latest AHDB 30kg ex-farm weaner average remains under pressure at £44.07/head with lack of finishing space being the main culprit.

On the cereals front feed wheat traded this week at similar levels around £168.00/tonne and LIFFE wheat futures were also continuing to paint a relatively expensive picture with July at £172.50/tonne and November at £155.00/tonne.

Looking ahead however now that the various short weeks are out of the way until the end of August Bank Holiday, providing the euro does not collapse signs are emerging that we could see something of an improvement in pig prices as supplies contract.